Advertisement
OVERALL PERFORMANCE
Funds from Operations
---------------------------------------------------------------------------- Three months ended Nine months ended Dec 31, Dec 31,(thousands of U.S. dollars) 2012 2011 2012 2011----------------------------------------------------------------------------Oil and natural gas revenue 46,515 74,789 159,694 249,877Other income - 6,453 311 6,453Production and operating expenses (7,846) (9,632) (25,419) (27,720)General and administrative expenses (668) (1,529) (4,990) (5,544)Net finance expense (6,938) (3,957) (19,102) (15,346)Realized foreign exchange loss (1,515) (1,035) (3,997) (4,403)Current income tax recovery (expense) (792) 1,241 1,300 (3,048)Minimum alternate tax expense (1,839) (6,221) (6,249) (19,019)----------------------------------------------------------------------------Funds from operations (1) 26,917 60,109 101,548 181,250---------------------------------------------------------------------------- (1) Funds from operations is a non-IFRS measure as defined under "Non-IFRS measures" in this MD&A.
Oil and natural gas revenue during the three months ended December 31, 2012 decreased $28 million compared to the prior year's quarter. Oil and natural gas revenue during the nine months ended December 31, 2012 decreased $90 million compared to the prior year's period. These decreases were primarily due to lower natural gas and crude oil sales from the D6 Block along with an adjustment to profit petroleum expense at the Hazira Field recorded in the first quarter of fiscal 2013.
Sales volumes from the D6 Block were 88 MMcfe/d and 104 MMcfe/d in the quarter and year-to-date period, respectively compared to 151 MMcfe/d and 167 MMcfe/d in the prior year's quarter and year-to-date period, respectively. The Company expects decline in production from the D6 Block to continue unless incremental production volume is added from new fields in the D6 Block.
An additional $6 million of profit petroleum expense for the Hazira Field reduced oil and natural gas revenue in the first quarter of fiscal 2013. The adjustment to profit petroleum expense was the result of a court ruling finding that the 36-inch natural gas sales pipeline that Niko and GSPC constructed to connect the Hazira Field to the local industrial area was not eligible for cost recovery. There was a current income tax recovery of $2 million as a result of this adjustment to profit petroleum expense, which is deductible for tax purposes.
Other income in prior year's quarter and period include proceeds from the farm outs in excess of the recorded cost.
Net finance expense reflects the impacts of repayment of Cdn$310 million of 5% convertible debentures and issue of Cdn$115 million of 7% senior secured notes in December 2012, the impact of borrowings under the Company's credit facility, and costs related to pursuing financing options.
The Indian rupee weakened against the US dollar during the quarter and year to date. As a result, there was a realized foreign exchange loss during the quarter due to revaluing Indian rupee based accounts receivables to US dollars, which were partly offset by gains arising due to revaluing Indian rupee based accounts payable to US dollars.
